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Dohwa Engineering

002150 · KOSPI · ₩002150 · 도화엔지니어링

₩5,370▲ ₩40 (0.75%)End-of-day · Oct 27, 2026 · End-of-day prices.
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Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩13,176

vs the current price (₩5,370)

Enterprise value
₩493B
Equity value
₩444B
WACC
6.1%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 145% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

  • To match today's price of ₩5,370, the model needs an operating margin of 1.4% every year (it uses 3.2%).
  • Or revenue growth −13.6 points a year higher than assumed in each of the 5 years.
  • Today's P/E is 20.6× against a typical 16.2× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear
₩2,458
−54.2%
Base
₩13,176
+145.4%
Bull
₩34,165
+536.2%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (3.2%).

Revenue growth

  • 7.9%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (7.9% a year, annual reports), fading to 3% by year 5.

  • 6.7%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (7.9% a year, annual reports), fading to 3% by year 5.

  • 5.5%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (7.9% a year, annual reports), fading to 3% by year 5.

  • 4.2%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (7.9% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (7.9% a year, annual reports), fading to 3% by year 5.

Business

  • 3.2%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 1.2%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 1.5%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • -10%

    Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.

    Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.07, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.61%

    The interest rate the company would pay to borrow.

    Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026)
₩699B
Net debt (borrowings and leases − cash and deposits)
₩116B
+ Stakes and investments
₩67B
Associates, long-term financial assets and deposits (book value)
Shares
33,720,000
Share price
₩5,370
Market cap
₩181B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩575B₩583B₩698B₩754B₩805B₩849B₩885B₩911B
Growth3.4%1.4%19.9%7.9%6.7%5.5%4.2%3.0%
EBIT₩22B−₩13B₩30B₩24B₩26B₩27B₩28B₩29B
EBIT margin3.8%−2.3%4.3%3.2%3.2%3.2%3.2%3.2%
After-tax EBIT₩16B−₩9.7B₩22B₩18B₩19B₩20B₩21B₩21B
+ Depreciation₩6.2B₩7B₩10B₩9.1B₩9.7B₩10B₩11B₩11B
− Capital spending₩8.7B₩6.2B₩14B₩11B₩12B₩13B₩13B₩14B
− Working capital−₩7.9B−₩34B₩1.5B−₩5.5B−₩5.1B−₩4.4B−₩3.6B−₩2.7B
Free cash flow₩21B₩25B₩17B₩21B₩21B₩22B₩21B₩21B
Discount factor———0.9420.8880.8370.7890.744
Present value———₩20B₩19B₩18B₩17B₩16B

Terminal value ₩544B, worth ₩404B today: 82% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

LowTypicalHigh
Price / book (book value ₩7,387 a share)Now 0.73×₩6,0830.82×₩7,1440.97×₩8,4801.15×
Price / earnings (last 12 months: ₩260 a share)Now 20.6×₩2,70710.4×₩4,21816.2×₩6,40324.6×
P/E on run-rate earnings (Q2 2026 × 4: ₩489 a share)Now 11.0×₩5,08610.4×₩7,92416.2×₩12,02924.6×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →1.0%1.5%2.0%2.5%3.0%
5.1%₩13,189₩15,208₩17,881₩21,584₩27,052
5.6%₩11,607₩13,184₩15,202₩17,873₩21,574
6.1%₩10,335₩11,600₩13,176₩15,192₩17,861
6.6%₩9,290₩10,326₩11,590₩13,165₩15,178
7.1%₩8,416₩9,280₩10,315₩11,578₩13,150

Now (TTM)

Market cap
₩181B
Enterprise value
₩297B
P/E
20.6×
P/B
0.7×
P/S
0.3×
EV/EBITDA
8.4×
Dividend yield
5.6%

Over time (at each year end)

20252024202320222021
Price₩6,380₩6,540₩7,930₩8,210₩7,650
Market cap₩215B₩221B₩267B₩277B₩258B
P/E29.4×—12.9×168.6×17.2×
P/B0.8×0.9×1.0×1.0×1.0×
P/S0.3×0.4×0.5×0.5×0.4×
EV/EBITDA6.8×—8.3×13.6×8.1×
Dividend yield4.7%4.3%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Dohwa Engineering20.6×0.7×0.3×8.4×5.6%
Samsung E&A18.4×2.4×1.3×—1.3%
HD Hyundai Marine Solution23.7×8.9×3.6×—2.2%
KEPCO Engineering & Construction97.3×5.9×6.5×48.4×1.5%
POSCO DX90.5×5.1×3.0×—0.0%
Hanyang ENG7.4×0.7×0.4×3.6×0.0%
SemiFive—2.1×3.9×—0.0%
Similar companies (median)23.7×3.8×3.3×26.0×0.6%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Dohwa Engineering / 도화엔지니어링 / 002150 / KRX:002150

Source: KRX statistical information